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(State or Other Jurisdiction of
Incorporation or Organization) |
(I.R.S. Employer
Identification No.) |
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(Address of Principal Executive Offices)
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(Zip Code) | |||||||
| Title of each class | Symbol | Name of exchange on which registered | ||||||||||||
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☒ | Accelerated filer | ☐ | Non‑accelerated filer | ☐ | Smaller reporting company |
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| Emerging Growth Company |
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| Page No. | ||||||||
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PART I
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||||||||
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Item 1
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Business | |||||||
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Item 1A
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Risk Factors | |||||||
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Item 1B
|
Unresolved Staff Comments | |||||||
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Item 2
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Properties | |||||||
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Item 3
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Legal Proceedings | |||||||
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Item 4
|
Mine Safety Disclosures | |||||||
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PART II
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Item 5
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Market for Registrant's Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities
|
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Item 6
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Selected Financial Data | |||||||
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Item 7
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Management's Discussion and Analysis of Financial Condition and Results of Operation
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Item 7A
|
Quantitative and Qualitative Disclosures About Market Risk | |||||||
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Item 8
|
Financial Statements and Supplementary Data | |||||||
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Item 9
|
Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
|
|||||||
|
Item 9A
|
Controls and Procedures | |||||||
|
Item 9B
|
Other Information | |||||||
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Part III
|
||||||||
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Item 10
|
Directors, Executive Officers and Corporate Governance | |||||||
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Item 11
|
Executive Compensation | |||||||
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Item 12
|
Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
|
|||||||
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Item 13
|
Certain Relationships and Related Transactions, and Director Independence | |||||||
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Item 14
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Principal Accountant Fees and Services | |||||||
| Part IV | ||||||||
|
Item 15
|
Exhibits and Financial Statement Schedules | |||||||
|
Item 16
|
Form 10-K Summary | |||||||
| 12/26/2020 | 12/28/2019 | ||||||||||
|
Engineered Support Structures
|
$ | 247.1 | $ | 254.0 | |||||||
|
Utility Support Structures
|
563.3 | 615.0 | |||||||||
|
Irrigation
|
328.3 | 55.0 | |||||||||
|
Coatings
|
0.4 | 0.1 | |||||||||
| $ | 1,139.1 | $ | 924.1 | ||||||||
| Period |
(a)
Total Number of Shares Purchased |
(b)
Average Price paid per share |
(c)
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs |
(d)
Approximate Dollar Value of Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs |
||||||||||||||||||||||
| September 27, 2020 to October 24, 2020 | 55,027 | $ | 127.15 | 55,027 | $ | 169,448,000 | ||||||||||||||||||||
| October 25, 2020 to November 28, 2020 | 88,031 | 153.82 | 88,031 | 155,907,000 | ||||||||||||||||||||||
| November 29, 2020 to December 26, 2020 | 46,925 | 169.34 | 46,925 | 147,960,000 | ||||||||||||||||||||||
|
Total
|
189,983 | $ | 149.93 | 189,983 | $ | 147,960,000 | ||||||||||||||||||||
| (Dollars in thousands, except per share amounts) | 2020 | 2019 | 2018 | 2017 | 2016 | |||||||||||||||||||||||||||
|
Operating Data
|
(3) | (4) | ||||||||||||||||||||||||||||||
|
Net sales
|
$ | 2,895,355 | $ | 2,766,976 | $ | 2,757,144 | $ | 2,745,967 | $ | 2,521,676 | ||||||||||||||||||||||
|
Operating income (1)
|
225,953 | 227,905 | 212,172 | 272,760 | 248,346 | |||||||||||||||||||||||||||
|
Net earnings attributable to Valmont Industries, Inc. (2)
|
140,693 | 146,408 | 101,770 | 120,500 | 175,461 | |||||||||||||||||||||||||||
|
Depreciation and amortization
|
82,892 | 82,264 | 82,827 | 84,957 | 82,417 | |||||||||||||||||||||||||||
|
Capital expenditures
|
106,700 | 97,425 | 71,985 | 55,266 | 57,920 | |||||||||||||||||||||||||||
|
Per Share Data
|
||||||||||||||||||||||||||||||||
|
Earnings:
|
||||||||||||||||||||||||||||||||
|
Basic (2)
|
$ | 6.60 | $ | 6.76 | $ | 4.56 | $ | 5.35 | $ | 7.78 | ||||||||||||||||||||||
|
Diluted (2)
|
6.57 | 6.73 | 4.53 | 5.30 | 7.73 | |||||||||||||||||||||||||||
|
Cash dividends declared
|
1.800 | 1.500 | 1.500 | 1.500 | 1.500 | |||||||||||||||||||||||||||
|
Financial Position
|
||||||||||||||||||||||||||||||||
|
Working capital
|
$ | 881,322 | $ | 918,445 | $ | 985,224 | $ | 1,113,294 | $ | 941,415 | ||||||||||||||||||||||
|
Property, plant and equipment, net
|
597,727 | 558,129 | 513,992 | 518,928 | 518,335 | |||||||||||||||||||||||||||
|
Total assets
|
2,953,160 | 2,807,216 | 2,583,893 | 2,645,977 | 2,429,778 | |||||||||||||||||||||||||||
|
Long-term debt, including current installments
|
731,179 | 765,704 | 742,601 | 754,854 | 755,646 | |||||||||||||||||||||||||||
|
Total Valmont Industries, Inc. shareholders’ equity.
|
1,182,062 | 1,144,338 | 1,099,976 | 1,145,631 | 972,017 | |||||||||||||||||||||||||||
|
Cash flow data:
|
||||||||||||||||||||||||||||||||
|
Net cash flows from operating activities
|
$ | 316,294 | $ | 307,614 | $ | 153,008 | $ | 133,148 | $ | 232,820 | ||||||||||||||||||||||
|
Net cash flows from investing activities
|
(104,029) | (168,150) | (155,445) | (49,615) | (53,049) | |||||||||||||||||||||||||||
|
Net cash flows from financing activities
|
(173,756) | (98,950) | (162,110) | (32,010) | (95,158) | |||||||||||||||||||||||||||
|
Financial Measures
|
||||||||||||||||||||||||||||||||
|
Invested capital(a)
|
$ | 1,974,162 | $ | 1,977,223 | $ | 1,929,016 | $ | 1,939,605 | $ | 1,767,513 | ||||||||||||||||||||||
|
Return on invested capital(a)
|
8.7 | % | 8.9 | % | 8.0 | % | 10.6 | % | 9.8 | % | ||||||||||||||||||||||
|
Adjusted EBITDA(b)
|
$ | 353,619 | $ | 316,578 | $ | 346,128 | $ | 357,667 | $ | 329,601 | ||||||||||||||||||||||
|
Return on beginning shareholders’ equity(c)
|
12.3 | % | 13.3 | % | 8.9 | % | 12.4 | % | 18.6 | % | ||||||||||||||||||||||
|
Leverage ratio (d)
|
2.17 | 2.49 | 2.18 | 2.11 | 2.29 | |||||||||||||||||||||||||||
|
Year End Data
|
||||||||||||||||||||||||||||||||
|
Shares outstanding (000)
|
21,225 | 21,544 | 21,942 | 22,694 | 22,521 | |||||||||||||||||||||||||||
|
Approximate number of shareholders
|
17,768 | 21,631 | 21,569 | 24,801 | 26,057 | |||||||||||||||||||||||||||
|
Number of employees
|
10,844 | 10,398 | 10,328 | 10,690 | 10,552 | |||||||||||||||||||||||||||
| 2020 | 2019 | 2018 | 2017 | 2016 | |||||||||||||||||||||||||
|
Operating income
|
$ | 225,953 | $ | 227,905 | $ | 212,172 | $ | 272,760 | $ | 248,346 | |||||||||||||||||||
|
Adjusted effective tax rate (1)
|
24.2 | % | 23.9 | % | 27.1 | % | 28.1 | % | 30.8 | % | |||||||||||||||||||
|
Tax effect on operating income
|
(54,681) | (54,469) | (57,499) | (76,646) | (76,491) | ||||||||||||||||||||||||
|
After-tax operating income
|
171,272 | 173,436 | 154,673 | 196,114 | 171,855 | ||||||||||||||||||||||||
|
Average invested capital
|
1,975,693 | 1,953,120 | 1,934,311 | 1,853,559 | 1,759,001 | ||||||||||||||||||||||||
|
Return on invested capital
|
8.7 | % | 8.9 | % | 8.0 | % | 10.6 | % | 9.8 | % | |||||||||||||||||||
|
Total assets
|
2,953,160 | 2,807,216 | 2,583,893 | 2,645,977 | 2,429,778 | ||||||||||||||||||||||||
|
Less: Accounts payable
|
(268,099) | (197,957) | (218,115) | (227,906) | (177,488) | ||||||||||||||||||||||||
|
Less: Accrued expenses
|
(227,735) | (167,264) | (171,233) | (165,455) | (162,318) | ||||||||||||||||||||||||
|
Less: Defined benefit pension liability
|
(118,523) | (140,007) | (143,904) | (189,552) | (209,470) | ||||||||||||||||||||||||
|
Less: Deferred compensation
|
(44,519) | (45,114) | (46,107) | (48,526) | (44,319) | ||||||||||||||||||||||||
|
Less: Other noncurrent liabilities
|
(58,657) | (8,904) | (10,394) | (20,585) | (14,910) | ||||||||||||||||||||||||
|
Less: Dividends payable
|
(9,556) | (8,079) | (8,230) | (8,510) | (8,445) | ||||||||||||||||||||||||
|
Less: Lease liability
|
(80,202) | (85,817) | — | — | — | ||||||||||||||||||||||||
| Less: Contract liability | (130,018) | (117,945) | — | — | — | ||||||||||||||||||||||||
|
Less: Deferred tax liability
|
(41,689) | (58,906) | (56,894) | (45,838) | (45,315) | ||||||||||||||||||||||||
|
Total Invested capital
|
$ | 1,974,162 | $ | 1,977,223 | $ | 1,929,016 | $ | 1,939,605 | $ | 1,767,513 | |||||||||||||||||||
|
Beginning of year invested capital
|
$ | 1,977,223 | $ | 1,929,016 | $ | 1,939,605 | $ | 1,767,513 | $ | 1,750,488 | |||||||||||||||||||
|
Average invested capital
|
$ | 1,975,693 | $ | 1,953,120 | $ | 1,934,311 | $ | 1,853,559 | $ | 1,759,001 | |||||||||||||||||||
| 2020 | 2019 | 2018 | 2017 | 2016 | |||||||||||||||||||||||||
|
Net cash flows from operations
|
$ | 316,294 | $ | 307,614 | $ | 153,008 | $ | 133,148 | $ | 232,820 | |||||||||||||||||||
|
Interest expense
|
41,075 | 40,153 | 44,237 | 44,645 | 44,409 | ||||||||||||||||||||||||
|
Income tax expense
|
49,615 | 47,753 | 45,608 | 107,565 | 42,806 | ||||||||||||||||||||||||
|
Loss on investment
|
(39) | 172 | 62 | (237) | (586) | ||||||||||||||||||||||||
|
Change in fair value of contingent consideration
|
— | — | — | — | 3,242 | ||||||||||||||||||||||||
|
Loss on divestiture of grinding media business
|
— | — | (6,084) | — | — | ||||||||||||||||||||||||
|
Impairment of goodwill and intangible assets
|
(16,638) | — | (15,780) | — | — | ||||||||||||||||||||||||
|
Impairment of property, plant and equipment
|
(3,751) | — | (5,000) | — | (1,099) | ||||||||||||||||||||||||
|
Deferred income tax (expense) benefit
|
1,397 | (1,486) | (814) | (41,175) | 22,942 | ||||||||||||||||||||||||
|
Noncontrolling interest
|
(1,456) | (5,697) | (5,955) | (6,079) | (5,159) | ||||||||||||||||||||||||
|
Equity in earnings of nonconsolidated subsidiaries
|
(1,004) | — | — | — | — | ||||||||||||||||||||||||
|
Stock-based compensation
|
(14,874) | (11,587) | (10,392) | (10,706) | (9,931) | ||||||||||||||||||||||||
|
Pension plan expense
|
7,311 | 513 | 2,251 | (648) | (1,870) | ||||||||||||||||||||||||
|
Contribution to pension plan
|
35,399 | 18,461 | 1,537 | 40,245 | 1,488 | ||||||||||||||||||||||||
|
Changes in assets and liabilities, net of acquisitions
|
(98,994) | (81,831) | 71,539 | 86,985 | 16,662 | ||||||||||||||||||||||||
|
Other
|
(60) | 2,513 | 225 | 3,924 | (631) | ||||||||||||||||||||||||
|
EBITDA
|
314,275 | 316,578 | 274,442 | 357,667 | 345,093 | ||||||||||||||||||||||||
|
Reversal of contingent liability
|
— | — | — | — | (16,591) | ||||||||||||||||||||||||
|
Impairment of goodwill and intangible assets
|
16,638 | — | 15,780 | — | — | ||||||||||||||||||||||||
|
Cash restructuring expenses
|
18,955 | — | 29,031 | — | — | ||||||||||||||||||||||||
|
Impairment of assets - restructuring activities
|
3,751 | — | 12,944 | — | 1,099 | ||||||||||||||||||||||||
|
Loss on divestiture of grinding media business
|
— | — | 6,084 | — | — | ||||||||||||||||||||||||
|
EBITDA from acquisitions (months not owned by Company)
|
— | — | 7,847 | — | — | ||||||||||||||||||||||||
|
Adjusted EBITDA
|
$ | 353,619 | $ | 316,578 | $ | 346,128 | $ | 357,667 | $ | 329,601 | |||||||||||||||||||
| 2020 | 2019 | 2018 | 2017 | 2016 | |||||||||||||||||||||||||
|
Net earnings attributable to Valmont Industries, Inc.
|
$ | 140,693 | $ | 146,408 | $ | 101,770 | $ | 120,500 | $ | 175,461 | |||||||||||||||||||
|
Interest expense
|
41,075 | 40,153 | 44,237 | 44,645 | 44,409 | ||||||||||||||||||||||||
|
Income tax expense
|
49,615 | 47,753 | 45,608 | 107,565 | 42,806 | ||||||||||||||||||||||||
|
Depreciation and amortization expense
|
82,892 | 82,264 | 82,827 | 84,957 | 82,417 | ||||||||||||||||||||||||
|
EBITDA
|
314,275 | 316,578 | 274,442 | 357,667 | 345,093 | ||||||||||||||||||||||||
|
Reversal of contingent liability
|
— | — | — | — | (16,591) | ||||||||||||||||||||||||
|
Impairment of goodwill and intangible assets
|
16,638 | — | 15,780 | — | — | ||||||||||||||||||||||||
|
Cash restructuring expenses
|
18,955 | — | 29,031 | — | — | ||||||||||||||||||||||||
|
Impairment of assets - restructuring activities
|
3,751 | — | 12,944 | — | 1,099 | ||||||||||||||||||||||||
|
Loss on divestiture of grinding media business
|
— | — | 6,084 | — | — | ||||||||||||||||||||||||
|
EBITDA from acquisitions (months not owned by Company)
|
— | — | 7,847 | — | — | ||||||||||||||||||||||||
|
Adjusted EBITDA
|
$ | 353,619 | $ | 316,578 | $ | 346,128 | $ | 357,667 | $ | 329,601 | |||||||||||||||||||
| 2020 | 2019 | 2018 | 2017 | 2016 | |||||||||||||||||||||||||
|
Current portion of long-term debt
|
$ | 2,748 | $ | 760 | $ | 779 | $ | 966 | $ | 851 | |||||||||||||||||||
|
Notes payable to bank
|
35,147 | 21,774 | 10,678 | 161 | 746 | ||||||||||||||||||||||||
|
Long-term debt
|
728,431 | 764,944 | 741,822 | 753,888 | 754,795 | ||||||||||||||||||||||||
|
Total interest bearing debt
|
766,326 | 787,478 | 753,279 | 755,015 | 756,392 | ||||||||||||||||||||||||
|
Adjusted EBITDA
|
353,619 | 316,578 | 346,128 | 357,667 | 329,601 | ||||||||||||||||||||||||
|
Leverage Ratio
|
2.17 | 2.49 | 2.18 | 2.11 | 2.29 | ||||||||||||||||||||||||
| 2020 | 2019 |
Change
2020 - 2019 |
2018 |
Change
2019 - 2018 |
|||||||||||||||||||||||||
| Dollars in millions, except per share amounts | |||||||||||||||||||||||||||||
|
Consolidated
|
|||||||||||||||||||||||||||||
|
Net sales
|
$ | 2,895.4 | $ | 2,767.0 | 4.6 | % | $ | 2,757.1 | 0.4 | % | |||||||||||||||||||
|
Gross profit
|
765.5 | 682.7 | 12.1 | % | 668.2 | 2.2 | % | ||||||||||||||||||||||
|
as a percent of sales
|
26.4 | % | 24.7 | % | 24.2 | % | |||||||||||||||||||||||
|
SG&A expense
|
539.6 | 454.8 | 18.6 | % | 456.0 | (0.3) | % | ||||||||||||||||||||||
|
as a percent of sales
|
18.6 | % | 16.4 | % | 16.5 | % | |||||||||||||||||||||||
|
Operating income
|
225.9 | 227.9 | (0.9) | % | 212.2 | 7.4 | % | ||||||||||||||||||||||
|
as a percent of sales
|
7.8 | % | 8.2 | % | 7.7 | % | |||||||||||||||||||||||
|
Net interest expense
|
38.7 | 36.2 | 6.9 | % | 39.6 | (8.6) | % | ||||||||||||||||||||||
|
Effective tax rate
|
25.7 | % | 23.9 | % | 29.7 | % | |||||||||||||||||||||||
|
Net earnings attributable to Valmont Industries, Inc
|
140.7 | 146.4 | (3.9) | % | 101.8 | 43.8 | % | ||||||||||||||||||||||
|
Diluted earnings per share
|
$ | 6.57 | $ | 6.73 | (2.4) | % | $ | 4.53 | 48.6 | % | |||||||||||||||||||
|
Engineered Support Structures Segment
|
|||||||||||||||||||||||||||||
|
Net sales
|
$ | 983.5 | $ | 1,002.1 | (1.9) | % | $ | 967.3 | 3.6 | % | |||||||||||||||||||
|
Gross profit
|
271.4 | 229.0 | 18.5 | % | 213.1 | 7.5 | % | ||||||||||||||||||||||
|
SG&A expense
|
206.1 | 163.4 | 26.1 | % | 178.3 | (8.4) | % | ||||||||||||||||||||||
|
Operating income
|
65.3 | 65.6 | (0.5) | % | 34.8 | 88.5 | % | ||||||||||||||||||||||
|
Utility Support Structures Segment
|
|||||||||||||||||||||||||||||
|
Net sales
|
$ | 1,002.2 | $ | 885.6 | 13.2 | % | $ | 855.2 | 3.6 | % | |||||||||||||||||||
|
Gross profit
|
210.4 | 187.6 | 12.2 | % | 170.5 | 10.0 | % | ||||||||||||||||||||||
|
SG&A expense
|
109.6 | 99.8 | 9.8 | % | 105.7 | (5.6) | % | ||||||||||||||||||||||
|
Operating income
|
100.8 | 87.8 | 14.8 | % | 64.8 | 35.5 | % | ||||||||||||||||||||||
|
Coatings Segment
|
|||||||||||||||||||||||||||||
|
Net sales
|
$ | 269.6 | $ | 300.6 | (10.3) | % | $ | 286.7 | 4.8 | % | |||||||||||||||||||
|
Gross profit
|
86.4 | 94.2 | (8.3) | % | 91.0 | 3.5 | % | ||||||||||||||||||||||
|
SG&A expense
|
43.4 | 43.2 | 0.5 | % | 35.7 | 21.0 | % | ||||||||||||||||||||||
|
Operating income
|
43.0 | 51.0 | (15.7) | % | 55.3 | (7.8) | % | ||||||||||||||||||||||
|
Irrigation Segment
|
|||||||||||||||||||||||||||||
|
Net sales
|
$ | 640.1 | $ | 578.7 | 10.6 | % | $ | 624.8 | (7.4) | % | |||||||||||||||||||
|
Gross profit
|
197.3 | 171.9 | 14.8 | % | 192.8 | (10.8) | % | ||||||||||||||||||||||
|
SG&A expense
|
114.2 | 100.2 | 14.0 | % | 95.1 | 5.4 | % | ||||||||||||||||||||||
|
Operating income
|
83.1 | 71.7 | 15.9 | % | 97.7 | (26.6) | % | ||||||||||||||||||||||
|
Other
|
|||||||||||||||||||||||||||||
|
Net sales
|
$ | — | $ | — | NM | $ | 23.1 | NM | |||||||||||||||||||||
|
Gross profit
|
— | — | NM | 0.8 | NM | ||||||||||||||||||||||||
|
SG&A expense
|
— | — | NM | 1.7 | NM | ||||||||||||||||||||||||
|
Operating income
|
— | — | NM | (0.9) | NM | ||||||||||||||||||||||||
|
Net corporate expense
|
|||||||||||||||||||||||||||||
|
SG&A expense
|
66.3 | 48.2 | 37.6 | % | 39.5 | 22.0 | % | ||||||||||||||||||||||
|
Operating loss
|
(66.3) | (48.2) | 37.6 | % | (39.5) | 22.0 | % | ||||||||||||||||||||||
| Total | ESS | Utility | Coatings | Irrigation | |||||||||||||
| Sales - 2019 | $ | 2,767.0 | $ | 1,002.1 | $ | 885.6 | $ | 300.6 | $ | 578.7 | |||||||
| Volume | 177.4 | (29.6) | 145.3 | (26.7) | 88.4 | ||||||||||||
| Pricing/mix | (37.5) | 10.1 | (36.4) | (3.2) | (8.0) | ||||||||||||
| Acquisition/(divestiture) | 10.7 | 2.6 | 6.2 | — | 1.9 | ||||||||||||
| Currency translation | (22.2) | (1.7) | 1.5 | (1.1) | (20.9) | ||||||||||||
| Sales - 2020 | $ | 2,895.4 | $ | 983.5 | $ | 1,002.2 | $ | 269.6 | $ | 640.1 | |||||||
| Total | ESS | Utility | Coatings | Irrigation | Corporate | |||||||||||||||
| Gross profit | $ | 6.8 | $ | 1.0 | $ | 4.2 | $ | 1.6 | $ | — | $ | — | ||||||||
| Operating Income | $ | 23.1 | $ | 7.6 | $ | 6.7 | $ | 3.9 | $ | 3.0 | $ | 1.9 | ||||||||
| Total | ESS | Utility | Coatings | Irrigation | Corporate | |||||||||||||||
| Full year | $ | (1.9) | $ | (0.8) | $ | 0.1 | $ | (0.5) | $ | (0.8) | $ | 0.1 | ||||||||
| Total | ESS | Utility | Coatings | Irrigation | Other | |||||||||||||||
| Sales - 2018 | $ | 2,757.1 | $ | 967.3 | $ | 855.2 | $ | 286.7 | $ | 624.8 | $ | 23.1 | ||||||||
| Volume | (102.1) | 18.1 | (60.3) | (15.8) | (44.1) | — | ||||||||||||||
| Pricing/mix | 82.0 | 17.6 | 51.5 | 11.5 | 1.4 | — | ||||||||||||||
| Acquisition/(divestiture) | 76.3 | 27.4 | 43.9 | 23.9 | 4.2 | (23.1) | ||||||||||||||
| Currency translation | (46.3) | (28.3) | (4.7) | (5.7) | (7.6) | — | ||||||||||||||
| Sales - 2019 | $ | 2,767.0 | $ | 1,002.1 | $ | 885.6 | $ | 300.6 | $ | 578.7 | $ | — | ||||||||
| Total | ESS | Utility | Coatings | Irrigation | Other | Corporate | |||||||||||||||||
| Full year | $ | (1.9) | $ | (0.8) | $ | 0.1 | $ | (0.5) | $ | (0.8) | $ | — | $ | 0.1 | |||||||||
| Dollars in thousands | 2020 | 2019 | 2018 | |||||||||||||||||
|
Net sales
|
$ | 1,854,141 | $ | 1,751,899 | $ | 1,693,787 | ||||||||||||||
|
Gross Profit
|
512,880 | 454,295 | 418,295 | |||||||||||||||||
|
Operating income
|
180,206 | 178,990 | 174,825 | |||||||||||||||||
|
Net earnings
|
106,404 | 109,908 | 73,761 | |||||||||||||||||
| Net earnings attributable to Valmont Industries, Inc. | 106,266 | 109,908 | 73,761 | |||||||||||||||||
| Dollars in thousands | 2020 | 2019 | |||||||||
| Current assets | $ | 738,437 | $ | 728,457 | |||||||
| Noncurrent assets | 701,571 | 661,919 | |||||||||
| Current liabilities | 321,979 | 312,984 | |||||||||
| Noncurrent liabilities | 1,100,657 | 1,076,491 | |||||||||
| Noncontrolling interest in consolidated subsidiaries | 1,738 | — | |||||||||
| Interest-bearing debt | $ | 766,326 | |||
| Adjusted EBITDA-last four quarters | 353,619 | ||||
| Leverage ratio | 2.17 | ||||
| Adjusted EBITDA-last four quarters | 353,619 | ||||
| Interest expense-last four quarters | 41,075 | ||||
| Interest earned ratio | 8.61 | ||||
| Contractual Obligations | Total | 2021 | 2022-2023 | 2024-2025 | After 2025 | |||||||||||||||||||||||||||
| Long‑term debt | $ | 759.5 | $ | 2.7 | $ | 1.8 | $ | — | $ | 755.0 | ||||||||||||||||||||||
| Interest | 1,074.9 | 38.6 | 77.1 | 77.0 | 882.2 | |||||||||||||||||||||||||||
| Delta pension plan contributions | 177.5 | 1.7 | 39.1 | 39.1 | 97.6 | |||||||||||||||||||||||||||
| Operating leases | 114.3 | 17.9 | 25.5 | 18.6 | 52.3 | |||||||||||||||||||||||||||
| Unconditional purchase commitments | 65.9 | 65.9 | — | — | — | |||||||||||||||||||||||||||
| Total contractual cash obligations | $ | 2,192.1 | $ | 126.8 | $ | 143.5 | $ | 134.7 | $ | 1,787.1 | ||||||||||||||||||||||
| 2020 | 2019 | ||||||||||
| (in millions) | |||||||||||
|
Australian dollar
|
$ | 15.0 | $ | 14.7 | |||||||
|
Euro
|
11.3 | 9.9 | |||||||||
|
Danish krone
|
5.5 | 5.7 | |||||||||
|
Chinese renminbi
|
6.7 | 6.9 | |||||||||
|
Canadian dollar
|
3.6 | 3.8 | |||||||||
|
U.K. pound
|
8.4 | 6.3 | |||||||||
|
Brazilian real
|
3.4 | 3.3 | |||||||||
| Assumptions | Pension | ||||
|
Discount rate
|
1.40 | % | |||
|
Expected return on plan assets
|
3.96 | % | |||
|
Inflation - CPI
|
2.00 | % | |||
|
Inflation - RPI
|
2.90 | % | |||
| Assumptions In Millions of Dollars |
Increase
in Pension Expense |
||||
|
0.25% decrease in discount rate
|
$ | 0.2 | |||
|
0.25% decrease in expected return on plan assets
|
$ | 1.4 | |||
|
0.25% increase in inflation
|
$ | 0.4 | |||
| Page | |||||
|
Consolidated Financial Statements
|
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|
Report of Independent Registered Public Accounting Firm
|
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|
Consolidated Statements of Earnings—Three-Year Period Ended December 26, 2020
|
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|
Consolidated Statements of Comprehensive Income—Three-Year Period Ended December 26, 2020
|
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|
Consolidated Balance Sheets—December 26, 2020 and December 28, 2019
|
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|
Consolidated Statements of Cash Flows—Three-Year Period Ended December 26, 2020
|
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|
Consolidated Statements of Shareholders’ Equity—Three-Year Period Ended December 26, 2020
|
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|
Notes to Consolidated Financial Statements—Three-Year Period Ended December 26, 2020
|
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| 2020 | 2019 | 2018 | |||||||||||||||
|
Product sales
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$ |
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$ |
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$ |
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Services sales
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Net sales
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Product cost of sales
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Services cost of sales
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Total cost of sales
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Gross profit
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Selling, general and administrative expenses
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| Impairment of goodwill and intangible assets |
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Operating income
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Other income (expenses):
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Interest expense
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(
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(
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(
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Interest income
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Gain (loss) on investments - unrealized
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(
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Costs associated with refinancing of debt
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(
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Loss from divestiture of grinding media business
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(
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Other
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(
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(
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(
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|||||||||||||||
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Earnings before income taxes and equity in earnings of nonconsolidated subsidiaries
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Income tax expense (benefit):
|
|||||||||||||||||
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Current
|
|
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Deferred
|
(
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Earnings before equity in earnings of nonconsolidated subsidiaries
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| Equity in earnings (loss) of nonconsolidated subsidiaries |
(
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|
||||||||||||||
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Net earnings
|
|
|
|
||||||||||||||
|
Less: Earnings attributable to noncontrolling interests
|
(
|
(
|
(
|
||||||||||||||
|
Net earnings attributable to Valmont Industries, Inc.
|
$ |
|
$ |
|
$ |
|
|||||||||||
|
Earnings per share:
|
|||||||||||||||||
|
Basic
|
$ |
|
$ |
|
$ |
|
|||||||||||
|
Diluted
|
$ |
|
$ |
|
$ |
|
|||||||||||
| 2020 | 2019 | 2018 | |||||||||||||||
|
Net earnings
|
$ |
|
$ |
|
$ |
|
|||||||||||
|
Other comprehensive income (loss), net of tax:
|
|||||||||||||||||
|
Foreign currency translation adjustments:
|
|||||||||||||||||
| Unrealized translation gains (losses) |
|
(
|
(
|
||||||||||||||
| Realized loss on divestiture of grinding media business recorded in other expense |
|
|
|
||||||||||||||
| $ |
|
$ |
(
|
$ |
(
|
||||||||||||
|
Gain/(loss) on hedging activities:
|
|||||||||||||||||
|
Unrealized gain on net investment hedges, net of tax expense (benefit) of $
|
|
|
|
||||||||||||||
| Realized loss on grinding media net investment hedge |
|
|
|
||||||||||||||
| Amortization cost (benefit) included in interest expense |
(
|
(
|
|
||||||||||||||
| Deferred loss on interest rate hedges |
|
|
(
|
||||||||||||||
| Cash flow hedges |
|
|
|
||||||||||||||
| Realized (gain) loss on cash flow hedges recorded in earnings |
(
|
|
|
||||||||||||||
| Commodity hedges |
|
(
|
|
||||||||||||||
| Realized (gain) loss on commodity hedges recorded in earnings |
|
|
(
|
||||||||||||||
|
Unrealized gain (loss) on cross currency swaps
|
(
|
|
|
||||||||||||||
|
|
|
|
|||||||||||||||
|
Actuarial gain (loss) on defined benefit pension plan, net of tax expense (benefit) of $(
|
(
|
(
|
|
||||||||||||||
|
Other comprehensive income (loss)
|
|
(
|
(
|
||||||||||||||
|
Comprehensive income
|
|
|
|
||||||||||||||
|
Comprehensive income attributable to noncontrolling interests
|
(
|
(
|
(
|
||||||||||||||
|
Comprehensive income attributable to Valmont Industries, Inc.
|
$ |
|
$ |
|
$ |
|
|||||||||||
| 2020 | 2019 | ||||||||||
|
ASSETS
|
|||||||||||
|
Current assets:
|
|||||||||||
| Cash and cash equivalents | $ |
|
$ |
|
|||||||
|
Receivables, less allowance of $
|
|
|
|||||||||
|
Inventories
|
|
|
|||||||||
|
Contract asset - costs and profits in excess of billings
|
|
|
|||||||||
| Prepaid expenses and other assets |
|
|
|||||||||
|
Refundable income taxes
|
|
|
|||||||||
|
Total current assets
|
|
|
|||||||||
|
Property, plant and equipment, at cost
|
|
|
|||||||||
|
Less accumulated depreciation and amortization
|
|
|
|||||||||
|
Net property, plant and equipment
|
|
|
|||||||||
|
Goodwill
|
|
|
|||||||||
|
Other intangible assets, net
|
|
|
|||||||||
|
Other assets
|
|
|
|||||||||
|
Total assets
|
$ |
|
$ |
|
|||||||
|
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
|||||||||||
|
Current liabilities:
|
|||||||||||
|
Current installments of long-term debt
|
$ |
|
$ |
|
|||||||
|
Notes payable to banks
|
|
|
|||||||||
|
Accounts payable
|
|
|
|||||||||
|
Accrued employee compensation and benefits
|
|
|
|||||||||
| Contract liabilities |
|
|
|||||||||
| Other accrued expenses |
|
|
|||||||||
|
Dividends payable
|
|
|
|||||||||
|
Total current liabilities
|
|
|
|||||||||
|
Deferred income taxes
|
|
|
|||||||||
|
Long-term debt, excluding current installments
|
|
|
|||||||||
|
Defined benefit pension liability
|
|
|
|||||||||
|
Operating lease liabilities
|
|
|
|||||||||
|
Deferred compensation
|
|
|
|||||||||
|
Other noncurrent liabilities
|
|
|
|||||||||
|
Shareholders’ equity:
|
|||||||||||
|
Preferred stock of $
|
|||||||||||
|
Authorized
|
|
|
|||||||||
|
Common stock of $
|
|||||||||||
|
Authorized
|
|
|
|||||||||
|
Additional paid-in capital
|
|
|
|||||||||
|
Retained earnings
|
|
|
|||||||||
|
Accumulated other comprehensive income (loss)
|
(
|
(
|
|||||||||
|
Cost of treasury stock, common shares of
|
(
|
(
|
|||||||||
|
Total Valmont Industries, Inc. shareholders’ equity
|
|
|
|||||||||
|
Noncontrolling interest in consolidated subsidiaries
|
|
|
|||||||||
|
Total shareholders’ equity
|
|
|
|||||||||
|
Total liabilities and shareholders’ equity
|
$ |
|
$ |
|
|||||||
| 2020 | 2019 | 2018 | |||||||||||||||
|
Cash flows from operating activities:
|
|||||||||||||||||
|
Net earnings
|
$ |
|
$ |
|
$ |
|
|||||||||||
|
Adjustments to reconcile net earnings to net cash flows from operations:
|
|||||||||||||||||
|
Depreciation and amortization
|
|
|
|
||||||||||||||
|
Noncash loss on trading securities
|
|
(
|
(
|
||||||||||||||
|
Contribution to defined benefit pension plan
|
(
|
(
|
(
|
||||||||||||||
|
Impairment of property, plant and equipment
|
|
|
|
||||||||||||||
|
Impairment of goodwill & intangible assets
|
|
|
|
||||||||||||||
|
Loss on divestiture of grinding media business
|
|
|
|
||||||||||||||
|
Stock-based compensation
|
|
|
|
||||||||||||||
|
Defined benefit pension plan expense (benefit)
|
(
|
(
|
(
|
||||||||||||||
| (Gain) loss on sale of property, plant and equipment |
|
(
|
(
|
||||||||||||||
|
Equity in earnings in nonconsolidated subsidiaries
|
|
|
|
||||||||||||||
|
Deferred income taxes
|
(
|
|
|
||||||||||||||
|
Changes in assets and liabilities (net of acquisitions):
|
|||||||||||||||||
|
Receivables
|
(
|
|
|
||||||||||||||
|
Inventories
|
(
|
|
(
|
||||||||||||||
| Prepaid expenses and other assets |
(
|
|
(
|
||||||||||||||
|
Contract asset - costs and profits in excess of billings
|
|
(
|
(
|
||||||||||||||
|
Accounts payable
|
|
(
|
(
|
||||||||||||||
|
Accrued expenses
|
|
(
|
|
||||||||||||||
| Contract liabilities |
|
|
(
|
||||||||||||||
|
Other noncurrent liabilities
|
|
(
|
(
|
||||||||||||||
|
Income taxes payable (refundable)
|
(
|
(
|
(
|
||||||||||||||
|
Net cash flows from operating activities
|
|
|
|
||||||||||||||
|
Cash flows from investing activities:
|
|||||||||||||||||
|
Purchase of property, plant and equipment
|
(
|
(
|
(
|
||||||||||||||
|
Proceeds from sale of assets
|
|
|
|
||||||||||||||
|
Acquisitions, net of cash acquired
|
(
|
(
|
(
|
||||||||||||||
|
Proceeds from settlement of net investment hedge
|
|
|
(
|
||||||||||||||
|
Investments in nonconsolidated subsidiaries
|
(
|
(
|
|
||||||||||||||
|
Other, net
|
(
|
|
(
|
||||||||||||||
|
Net cash flows used in investing activities
|
(
|
(
|
(
|
||||||||||||||
|
Cash flows from financing activities:
|
|||||||||||||||||
| Proceeds from short-term agreements |
|
|
|
||||||||||||||
| Payments on short-term agreements |
(
|
(
|
|
||||||||||||||
|
Proceeds from long-term borrowings
|
|
|
|
||||||||||||||
|
Principal payments on long-term borrowings
|
(
|
(
|
(
|
||||||||||||||
|
Settlement of financial derivatives
|
|
|
(
|
||||||||||||||
|
Debt issuance costs
|
|
|
(
|
||||||||||||||
|
Dividends paid
|
(
|
(
|
(
|
||||||||||||||
|
Dividends to noncontrolling interest
|
(
|
(
|
(
|
||||||||||||||
|
Purchase of noncontrolling interest
|
(
|
(
|
(
|
||||||||||||||
|
Proceeds from exercises under stock plans
|
|
|
|
||||||||||||||
|
Purchase of treasury shares
|
(
|
(
|
(
|
||||||||||||||
|
Purchase of common treasury shares—stock plan exercises
|
(
|
(
|
(
|
||||||||||||||
|
Net cash flows used in financing activities
|
(
|
(
|
(
|
||||||||||||||
|
Effect of exchange rate changes on cash and cash equivalents
|
|
(
|
(
|
||||||||||||||
|
Net change in cash and cash equivalents
|
|
|
(
|
||||||||||||||
|
Cash, cash equivalents, and restricted cash—beginning of year
|
|
|
|
||||||||||||||
|
Cash, cash equivalents, and restricted cash—end of year
|
$ |
|
$ |
|
$ |
|
|||||||||||
|
Common
stock |
Additional
paid-in capital |
Retained
earnings |
Accumulated
other comprehensive income (loss) |
Treasury
stock |
Noncontrolling
interest in consolidated subsidiaries |
Total
shareholders’ equity |
|||||||||||||||||||||||||||||||||||
| Balance at December 30, 2017 (1) | $ |
|
$ |
|
$ |
|
$ |
(
|
$ |
(
|
$ |
|
$ |
|
|||||||||||||||||||||||||||
| Net earnings | — | — |
|
— | — |
|
|
||||||||||||||||||||||||||||||||||
| Other comprehensive income (loss) | — | — | — |
(
|
— |
|
(
|
||||||||||||||||||||||||||||||||||
|
Cash dividends declared ($
|
— | — |
(
|
— | — | — |
(
|
||||||||||||||||||||||||||||||||||
| Dividends to noncontrolling interests | — | — | — | — | — |
(
|
(
|
||||||||||||||||||||||||||||||||||
| Purchase of noncontrolling interest | — | — | — | — | — |
(
|
(
|
||||||||||||||||||||||||||||||||||
| Cumulative impact of ASC 606 adoption | — | — |
|
— | — | — |
|
||||||||||||||||||||||||||||||||||
| Impact of ASU 2016-16 adoption | — | — |
|
— | — | — |
|
||||||||||||||||||||||||||||||||||
| Addition of noncontrolling interest | — | — | — | — | — |
|
|
||||||||||||||||||||||||||||||||||
|
Purchase of treasury shares;
|
— | — | — | — |
(
|
— |
(
|
||||||||||||||||||||||||||||||||||
|
Stock plan exercises,
|
— | — | — | — |
(
|
— |
(
|
||||||||||||||||||||||||||||||||||
|
Stock options exercised;
|
— |
(
|
|
— |
|
— |
|
||||||||||||||||||||||||||||||||||
| Stock option expense | — |
|
— | — | — | — |
|
||||||||||||||||||||||||||||||||||
|
Stock awards;
|
— |
(
|
— | — |
|
— |
|
||||||||||||||||||||||||||||||||||
| Balance at December 29, 2018 (1) |
|
|
|
(
|
(
|
|
|
||||||||||||||||||||||||||||||||||
| Net earnings | — | — |
|
— | — |
|
|
||||||||||||||||||||||||||||||||||
| Other comprehensive income (loss) | — | — | — |
(
|
— |
(
|
(
|
||||||||||||||||||||||||||||||||||
|
Cash dividends declared ($
|
— | — |
(
|
— | — | — |
(
|
||||||||||||||||||||||||||||||||||
| Dividends to noncontrolling interests | — | — | — | — | — |
(
|
(
|
||||||||||||||||||||||||||||||||||
| Purchase of noncontrolling interest | — |
|
— | — | — |
(
|
(
|
||||||||||||||||||||||||||||||||||
| — | — |
(
|
— | — | — |
(
|
|||||||||||||||||||||||||||||||||||
|
Purchase of treasury shares;
|
— | — | — | — |
(
|
— |
(
|
||||||||||||||||||||||||||||||||||
|
Stock plan exercises;
|
— | — | — | — |
(
|
— |
(
|
||||||||||||||||||||||||||||||||||
|
Stock options exercised;
|
— |
(
|
|
— |
|
— |
|
||||||||||||||||||||||||||||||||||
| Stock option expense | — |
|
— | — | — | — |
|
||||||||||||||||||||||||||||||||||
|
Stock awards;
|
— |
|
— | — |
|
— |
|
||||||||||||||||||||||||||||||||||
| Balance at December 28, 2019 (1) |
|
|
|
(
|
(
|
|
|
||||||||||||||||||||||||||||||||||
| Net earnings | — | — |
|
— | — |
|
|
||||||||||||||||||||||||||||||||||
| Other comprehensive income (loss) | — | — | — |
|
— |
|
|
||||||||||||||||||||||||||||||||||
|
Cash dividends declared ($
|
— | — |
(
|
— | — | — |
(
|
||||||||||||||||||||||||||||||||||
| Dividends to noncontrolling interests | — | — | — | — | — |
(
|
(
|
||||||||||||||||||||||||||||||||||
| Purchase of noncontrolling interest | — | — |
(
|
— | — |
(
|
(
|
||||||||||||||||||||||||||||||||||
| Addition of noncontrolling interest | — | — | — | — | — |
|
|
||||||||||||||||||||||||||||||||||
|
Purchase of treasury shares;
|
— | — | — | — |
(
|
— |
(
|
||||||||||||||||||||||||||||||||||
|
Stock plan exercises;
|
— | — | — | — |
(
|
— |
(
|
||||||||||||||||||||||||||||||||||
|
Stock options exercised;
|
— |
(
|
— | — |
|
— |
|
||||||||||||||||||||||||||||||||||
| Stock option expense | — |
|
— | — | — | — |
|
||||||||||||||||||||||||||||||||||
|
Stock awards;
|
— |
|
— | — |
|
— |
|
||||||||||||||||||||||||||||||||||
| Balance at December 26, 2020 | $ |
|
$ |
|
$ |
|
$ |
(
|
$ |
(
|
$ |
|
$ |
|
|||||||||||||||||||||||||||
| Fiscal Year 2019 | Fiscal Year 2018 | ||||||||||||||||||||||
| (in 000's, except earnings per share) | As Previously Reported | Retrospectively Adjusted | Adjustment | As Previously Reported | Retrospectively Adjusted | Adjustment | |||||||||||||||||
| Cost of sales |
|
|
|
|
|
(
|
|||||||||||||||||
| Operating income |
|
|
(
|
|
|
|
|||||||||||||||||
| Income tax expense |
|
|
(
|
|
|
|
|||||||||||||||||
| Net earnings attributed to Valmont Industries, Inc |
|
|
(
|
|
|
|
|||||||||||||||||
| Comprehensive (loss) income |
|
|
(
|
|
|
|
|||||||||||||||||
| Net earnings per diluted share |
|
|
(
|
|
|
|
|||||||||||||||||
| December 28, 2019 | |||||||||||
| Consolidated Balance Sheet | As Previously Reported | Adjustment | Retrospectively Adjusted | ||||||||
| Inventory |
|
|
|
||||||||
| Deferred income tax liability |
|
|
|
||||||||
| Retained earnings |
|
|
|
||||||||
| Foreign Currency Translation Adjustments | Gain on Hedging Activities | Defined Benefit Pension Plan | Accumulated Other Comprehensive Income (Loss) | ||||||||||||||||||||
| Balance at December 28, 2019 | $ |
(
|
$ |
|
$ |
(
|
$ |
(
|
|||||||||||||||
|
Current-period comprehensive income (loss)
|
|
|
(
|
|
|||||||||||||||||||
| Balance at December 26, 2020 | $ |
(
|
$ |
|
$ |
(
|
$ |
(
|
|||||||||||||||
| Point in Time | Over Time | Point in Time | Over Time | Point in Time | Over Time | ||||||||||||||||||||||||||||||
| Fiscal year ended December 26, 2020 | Fiscal year ended December 26, 2020 | Fiscal year ended December 28, 2019 | Fiscal year ended December 28, 2019 | Fiscal year ended December 29, 2018 | Fiscal year ended December 29, 2018 | ||||||||||||||||||||||||||||||
| Utility Support Structures | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||||||||
|
Engineered Support Structures
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
|
Coatings
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
|
Irrigation
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
|
Other
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
|
Total
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||||||||
| Fifty-two Weeks Ended December 28, 2019 | Fifty-two Weeks Ended December 29, 2018 | |||||||||||||
| Net sales | $ |
|
$ |
|
||||||||||
| Net earnings |
|
|
||||||||||||
| Earnings per share-diluted |
|
|
||||||||||||
| 2018 | |||||
| Pre-tax gain from divestiture, before recognition of currency translation loss | $ |
|
|||
|
Recognition of cumulative currency translation loss and hedges (out of OCI)
|
(
|
||||
|
Net pre-tax loss from divestiture of the grinding media business
|
$ |
(
|
|||
| ESS | Utility | Coatings | Irrigation | Other/ Corporate | TOTAL | |||||||||||||||||||||||||||||||||
| Severance | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
||||||||||||||||||||||||||
| Other cash restructuring expenses |
|
|
|
|
|
|
||||||||||||||||||||||||||||||||
| Impairments of fixed assets/net loss on disposals |
|
|
|
|
|
|
||||||||||||||||||||||||||||||||
| Total cost of sales |
|
|
|
|
|
|
||||||||||||||||||||||||||||||||
| Severance |
|
|
|
|
|
|
||||||||||||||||||||||||||||||||
| Other cash restructuring expenses |
|
|
|
|
|
|
||||||||||||||||||||||||||||||||
| Impairments of assets/net loss on disposals |
|
|
|
|
|
|
||||||||||||||||||||||||||||||||
| Total selling, general and administrative expenses |
|
|
|
|
|
|
||||||||||||||||||||||||||||||||
| Consolidated total | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
||||||||||||||||||||||||||
| Balance at December 28, 2019 | Recognized Restructuring Expense | Costs Paid or Otherwise Settled | Balance at December 26, 2020 | |||||||||||||||||||||||
| Severance | $ |
|
$ |
|
$ |
(
|
$ |
|
||||||||||||||||||
| Other cash restructuring expenses |
|
|
(
|
|
||||||||||||||||||||||
| Total | $ |
|
$ |
|
$ |
(
|
$ |
|
||||||||||||||||||
| 2020 | 2019 | 2018 | |||||||||||||||
|
Interest
|
$ |
|
$ |
|
$ |
|
|||||||||||
|
Income taxes
|
|
|
|
||||||||||||||
| 2020 | 2019 | ||||||||||
|
Raw materials and purchased parts
|
$ |
|
$ |
|
|||||||
|
Work-in-process
|
|
|
|||||||||
|
Finished goods and manufactured goods
|
|
|
|||||||||
| $ |
|
$ |
|
||||||||
| 2020 | 2019 | ||||||||||
|
Land and improvements
|
$ |
|
$ |
|
|||||||
|
Buildings and improvements
|
|
|
|||||||||
|
Machinery and equipment
|
|
|
|||||||||
|
Transportation equipment
|
|
|
|||||||||
|
Office furniture and equipment
|
|
|
|||||||||
|
Construction in progress
|
|
|
|||||||||
| $ |
|
$ |
|
||||||||
| December 26, 2020 | |||||||||||||||||
|
Gross
Carrying Amount |
Accumulated
Amortization |
Weighted
Average Life |
|||||||||||||||
|
Customer Relationships
|
$ |
|
$ |
|
|
||||||||||||
|
Patents & Proprietary Technology
|
|
|
|
||||||||||||||
|
Other
|
|
|
|
||||||||||||||
| $ |
|
$ |
|
||||||||||||||
| December 28, 2019 | |||||||||||||||||
|
Gross
Carrying Amount |
Accumulated
Amortization |
Weighted
Average Life |
|||||||||||||||
|
Customer Relationships
|
$ |
|
$ |
|
|
||||||||||||
|
Patents & Proprietary Technology
|
|
|
|
||||||||||||||
|
Other
|
|
|
|
||||||||||||||
| $ |
|
$ |
|
||||||||||||||
|
Estimated
Amortization Expense |
|||||
| 2021 | $ |
|
|||
| 2022 |
|
||||
| 2023 |
|
||||
| 2024 |
|
||||
| 2025 |
|
||||
|
December 26,
2020 |
December 28,
2019 |
Year Acquired | |||||||||||||||
|
Newmark
|
$ |
|
$ |
|
2004 | ||||||||||||
|
Webforge
|
|
|
2010 | ||||||||||||||
|
Valmont SM
|
|
|
2014 | ||||||||||||||
|
Ingal EPS/Ingal Civil Products
|
|
|
2010 | ||||||||||||||
|
Shakespeare
|
|
|
2014 | ||||||||||||||
|
Walpar
|
|
|
2018 | ||||||||||||||
|
Convert
|
|
|
2018 | ||||||||||||||
|
Other
|
|
|
|||||||||||||||
| $ |
|
$ |
|
||||||||||||||
|
Engineered
Support Structures Segment |
Utility
Support Structures Segment |
Coatings
Segment |
Irrigation
Segment |
Total | |||||||||||||||||||||||||
|
Gross balance at December 28, 2019
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||||
|
Accumulated impairment losses
|
(
|
(
|
(
|
|
(
|
||||||||||||||||||||||||
|
Balance at December 28, 2019
|
|
|
|
|
$ |
|
|||||||||||||||||||||||
|
Acquisitions
|
|
|
|
|
|
||||||||||||||||||||||||
| Impairment |
(
|
|
|
|
(
|
||||||||||||||||||||||||
|
Foreign currency translation
|
|
|
|
|
|
||||||||||||||||||||||||
| Balance at December 26, 2020 | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||||
|
Engineered
Support Structures Segment |
Utility
Support Structures Segment |
Coatings
Segment |
Irrigation
Segment |
Total | |||||||||||||||||||||||||
|
Gross balance at December 29, 2018
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||||
|
Accumulated impairment losses
|
(
|
(
|
(
|
|
(
|
||||||||||||||||||||||||
|
Balance at December 29, 2018
|
|
|
|
|
|
||||||||||||||||||||||||
|
Acquisitions
|
|
|
|
|
|
||||||||||||||||||||||||
|
Foreign currency translation
|
|
(
|
|
(
|
|
||||||||||||||||||||||||
|
Balance at December 28, 2019
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||||
| 2020 | 2019 | 2018 | |||||||||||||||
|
United States
|
$ |
|
$ |
|
$ |
|
|||||||||||
|
Foreign
|
|
|
|
||||||||||||||
| $ |
|
$ |
|
$ |
|
||||||||||||
| 2020 | 2019 | 2018 | |||||||||||||||
|
Current:
|
|||||||||||||||||
|
Federal
|
$ |
|
$ |
|
$ |
|
|||||||||||
|
State
|
|
|
|
||||||||||||||
|
Foreign
|
|
|
|
||||||||||||||
|
|
|
|
|||||||||||||||
|
Non-current:
|
(
|
(
|
(
|
||||||||||||||
|
Deferred:
|
|||||||||||||||||
|
Federal
|
(
|
|
|
||||||||||||||
|
State
|
(
|
|
|
||||||||||||||
|
Foreign
|
|
|
(
|
||||||||||||||
|
(
|
|
|
|||||||||||||||
| $ |
|
$ |
|
$ |
|
||||||||||||
| 2020 | 2019 | 2018 | |||||||||||||||
|
Statutory federal income tax rate
|
|
% |
|
% |
|
% | |||||||||||
|
State income taxes, net of federal benefit
|
|
|
|
||||||||||||||
|
Carryforwards, credits and changes in valuation allowances
|
(
|
(
|
|
||||||||||||||
|
Foreign tax rate differences
|
(
|
|
(
|
||||||||||||||
|
Changes in unrecognized tax benefits
|
|
(
|
(
|
||||||||||||||
| Goodwill and intangible impairment |
|
|
|
||||||||||||||
|
Effects of 2017 Tax Act
|
|
|
(
|
||||||||||||||
|
Other
|
|
|
|
||||||||||||||
|
|
% |
|
% |
|
% | ||||||||||||
| 2020 | 2019 | ||||||||||
|
Deferred income tax assets:
|
|||||||||||
|
Accrued expenses and allowances
|
$ |
|
$ |
|
|||||||
|
Tax credits and loss carryforwards
|
|
|
|||||||||
|
Defined benefit pension liability
|
|
|
|||||||||
|
Accrued compensation and benefits
|
|
|
|||||||||
|
Lease liabilities
|
|
|
|||||||||
|
Deferred compensation
|
|
|
|||||||||
|
Gross deferred income tax assets
|
|
|
|||||||||
|
Valuation allowance
|
(
|
(
|
|||||||||
|
Net deferred income tax assets
|
|
|
|||||||||
|
Deferred income tax liabilities:
|
|||||||||||
|
Property, plant and equipment
|
|
|
|||||||||
|
Intangible assets
|
|
|
|||||||||
|
Inventory allowances
|
|
|
|||||||||
|
Lease assets
|
|
|
|||||||||
|
Other deferred tax liabilities
|
|
|
|||||||||
|
Total deferred income tax liabilities
|
|
|
|||||||||
|
Net deferred income tax asset
|
$ |
|
$ |
|
|||||||
|
Balance Sheet Caption
|
2020 | 2019 | |||||||||
|
Other assets
|
$ |
|
$ |
|
|||||||
| Deferred income taxes |
(
|
(
|
|||||||||
|
Net deferred income tax asset
|
$ |
|
$ |
|
|||||||
| 2020 | 2019 | ||||||||||
|
Gross unrecognized tax benefits—beginning of year
|
$ |
|
$ |
|
|||||||
|
Gross increases—tax positions in prior period
|
|
|
|||||||||
|
Gross decreases—tax positions in prior period
|
(
|
|
|||||||||
|
Gross increases—current‑period tax positions
|
|
|
|||||||||
|
Settlements with taxing authorities
|
(
|
(
|
|||||||||
|
Lapse of statute of limitations
|
(
|
(
|
|||||||||
|
Gross unrecognized tax benefits—end of year
|
$ |
|
$ |
|
|||||||
|
December 26,
2020 |
December 28,
2019 |
||||||||||
|
|
$ |
|
$ |
|
|||||||
|
|
|
|
|||||||||
|
Unamortized discount on
|
(
|
(
|
|||||||||
| Revolving credit agreement (c) |
|
|
|||||||||
| IDR Bonds |
|
|
|||||||||
| Other notes |
|
|
|||||||||
| Debt issuance costs |
(
|
(
|
|||||||||
|
Long-term debt
|
|
|
|||||||||
| Less current installments of long-term debt |
|
|
|||||||||
|
Long-term debt, excluding current installments
|
$ |
|
$ |
|
|||||||
| 2020 | 2019 | 2018 | |||||||||||||||
|
Expected volatility
|
|
% |
|
% |
|
% | |||||||||||
|
Risk-free interest rate
|
|
% |
|
% |
|
% | |||||||||||
|
Expected life from vesting date
|
|
|
|
||||||||||||||
|
Dividend yield
|
|
% |
|
% |
|
% | |||||||||||
|
Number of
Shares |
Weighted
Average Exercise Price |
Weighted
Average Remaining Contractual Term |
Aggregate
Intrinsic Value |
||||||||||||||||||||
| Outstanding at December 30, 2017 |
|
$ |
|
||||||||||||||||||||
|
Granted
|
|
|
|||||||||||||||||||||
|
Exercised
|
(
|
|
|||||||||||||||||||||
|
Forfeited
|
(
|
|
|||||||||||||||||||||
| Outstanding at December 29, 2018 |
|
$ |
|
|
$ |
|
|||||||||||||||||
| Options vested or expected to vest at December 29, 2018 |
|
$ |
|
|
|
||||||||||||||||||
| Options exercisable at December 29, 2018 |
|
$ |
|
|
|
||||||||||||||||||
|
Number of
Shares |
Weighted
Average Exercise Price |
Weighted
Average Remaining Contractual Term |
Aggregate
Intrinsic Value |
||||||||||||||||||||
| Outstanding at December 29, 2018 |
|
$ |
|
||||||||||||||||||||
|
Granted
|
|
|
|||||||||||||||||||||
|
Exercised
|
(
|
|
|||||||||||||||||||||
|
Forfeited
|
(
|
|
|||||||||||||||||||||
| Outstanding at December 28, 2019 |
|
$ |
|
|
$ |
|
|||||||||||||||||
| Options vested or expected to vest at December 28, 2019 |
|
$ |
|
|
|
||||||||||||||||||
| Options exercisable at December 28, 2019 |
|
$ |
|
|
|
||||||||||||||||||
|
Number of
Shares |
Weighted
Average Exercise Price |
Weighted
Average Remaining Contractual Term |
Aggregate
Intrinsic Value |
||||||||||||||||||||
| Outstanding at December 28, 2019 |
|
$ |
|
||||||||||||||||||||
|
Granted
|
|
|
|||||||||||||||||||||
|
Exercised
|
(
|
|
|||||||||||||||||||||
|
Forfeited
|
(
|
|
|||||||||||||||||||||
| Outstanding at December 26, 2020 |
|
$ |
|
|
$ |
|
|||||||||||||||||
| Options vested or expected to vest at December 26, 2020 |
|
$ |
|
|
|
||||||||||||||||||
| Options exercisable at December 26, 2020 |
|
$ |
|
|
|
||||||||||||||||||
| Outstanding and Exercisable By Price Range | ||||||||||||||||||||||||||||||||
| Options Outstanding | Options Exercisable | |||||||||||||||||||||||||||||||
|
Exercise Price
Range |
Number |
Weighted
Average Remaining Contractual Life |
Weighted
Average Exercise Price |
Number |
Weighted
Average Exercise Price |
|||||||||||||||||||||||||||
|
$
|
|
|
$ |
|
|
$ |
|
|||||||||||||||||||||||||
|
$
|
|
|
|
|
|
|||||||||||||||||||||||||||
|
$
|
|
|
|
|
|
|||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||||
| 2020 | 2019 | 2018 | |||||||||||||||
|
Shares granted
|
|
|
|
||||||||||||||
|
Weighted‑average per share price on grant date
|
$ |
|
$ |
|
$ |
|
|||||||||||
|
Recognized compensation expense
|
$ |
|
$ |
|
$ |
|
|||||||||||
| Basic EPS |
Dilutive
Effect of Stock Options |
Diluted EPS | |||||||||||||||
| 2020: | |||||||||||||||||
|
Net earnings attributable to Valmont Industries, Inc.
|
$ |
|
$ |
|
$ |
|
|||||||||||
|
Weighted average shares outstanding (000's)
|
|
|
|
||||||||||||||
|
Per share amount
|
$ |
|
$ |
|
$ |
|
|||||||||||
| 2019: | |||||||||||||||||
|
Net earnings attributable to Valmont Industries, Inc.
|
$ |
|
$ |
|
$ |
|
|||||||||||
|
Weighted average shares outstanding (000's)
|
|
|
|
||||||||||||||
|
Per share amount
|
$ |
|
$ |
|
$ |
|
|||||||||||
| 2018: | |||||||||||||||||
| Net earnings attributable to Valmont Industries, Inc. | $ |
|
$ |
|
$ |
|
|||||||||||
| Weighted average shares outstanding (000's) |
|
|
|
||||||||||||||
| Per share amount | $ |
|
$ |
|
$ |
|
|||||||||||
| Fair Value Measurement Using: | |||||||||||||||||||||||
| Carrying Value December 26, 2020 |
Quoted Prices in
Active Markets for Identical Assets (Level 1) |
Significant Other
Observable Inputs (Level 2) |
Significant
Unobservable Inputs (Level 3) |
||||||||||||||||||||
|
Assets:
|
|||||||||||||||||||||||
|
Trading securities
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||
| Liabilities: | |||||||||||||||||||||||
|
Derivative financial instruments, net
|
$ |
(
|
$ |
|
$ |
(
|
$ |
|
|||||||||||||||
| Fair Value Measurement Using: | |||||||||||||||||||||||
| Carrying Value December 29, 2018 |
Quoted Prices in
Active Markets for Identical Assets (Level 1) |
Significant Other
Observable Inputs (Level 2) |
Significant
Unobservable Inputs (Level 3) |
||||||||||||||||||||
|
Assets:
|
|||||||||||||||||||||||
|
Trading securities
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||
|
Derivative financial instruments, net
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||
| Derivatives designated as hedging instruments: | Balance sheet location | December 26, 2020 | December 28, 2019 | ||||||||||||||
|
Foreign currency forward contracts
|
Prepaid expenses and other assets
|
|
|
||||||||||||||
|
Cross currency swap contracts
|
Prepaid expenses and other assets
|
|
|
||||||||||||||
|
Cross currency swap contracts
|
Accrued expenses
|
(
|
|
||||||||||||||
| $ |
(
|
$ |
|
||||||||||||||
| Derivatives designated as hedging instruments: | Statements of earnings location | 2020 | 2019 | 2018 | |||||||||||||||||||
| Commodity forward contracts |
Product cost of sales
|
$ |
|
$ |
(
|
$ |
|
||||||||||||||||
| Foreign currency forward contracts |
Loss from divestiture of grinding media business
|
|
|
(
|
|||||||||||||||||||
| Foreign currency forward contracts | Product Sales |
|
|
|
|||||||||||||||||||
| Foreign currency forward contracts |
Other income (expense)
|
|
|
|
|||||||||||||||||||
| Interest rate contracts |
Interest expense
|
(
|
(
|
(
|
|||||||||||||||||||
| Cross currency swap contracts |
Interest expense
|
|
|
|
|||||||||||||||||||
| $ |
|
$ |
|
$ |
|
||||||||||||||||||
| Currency | Notional Amount | Termination Date | Swapped Interest Rate | Net Settlement Amount | ||||||||||
| Danish Krone (DKK) | $ |
|
April 1, 2024 |
|
DKK
|
|||||||||
| Euro | $ |
|
April 1, 2024 |
|
€
|
|||||||||
| 2020 | 2019 | ||||||||||
|
Balance, beginning of period
|
$ |
|
$ |
|
|||||||
|
Payments made
|
(
|
(
|
|||||||||
|
Change in liability for warranties issued during the period
|
|
|
|||||||||
|
Change in liability for pre-existing warranties
|
(
|
(
|
|||||||||
|
Balance, end of period
|
$ |
|
$ |
|
|||||||
|
Projected
Benefit Obligation |
Plan
Assets |
Funded
status |
|||||||||||||||
| Fair Value at December 29, 2018 | $ |
|
$ |
|
$ |
(
|
|||||||||||
| Employer contributions | — |
|
|||||||||||||||
| Interest cost |
|
— | |||||||||||||||
| Actual return on plan assets | — |
|
|||||||||||||||
| Benefits paid |
(
|
(
|
|||||||||||||||
| Actuarial (gain) loss |
|
— | |||||||||||||||
| Currency translation |
|
|
|||||||||||||||
| Fair Value at December 28, 2019 | $ |
|
$ |
|
$ |
(
|
|||||||||||
|
Projected
Benefit Obligation |
Plan
Assets |
Funded
status |
|||||||||||||||
| Fair Value at December 28, 2019 | $ |
|
$ |
|
$ |
(
|
|||||||||||
| Employer contributions | — |
|
|||||||||||||||
| Interest cost |
|
— | |||||||||||||||
| Prior service costs - GMP equalization |
|
— | |||||||||||||||
| Actual return on plan assets | — |
|
|||||||||||||||
| Benefits paid |
(
|
(
|
|||||||||||||||
| Actuarial (gain) loss |
|
— | |||||||||||||||
| Currency translation |
|
|
|||||||||||||||
| Fair Value at December 26, 2020 | $ |
|
$ |
|
$ |
(
|
|||||||||||
| Balance December 29, 2018 | $ |
(
|
|||
| Actuarial gain (loss) |
(
|
||||
| Currency translation gain (loss) |
(
|
||||
| Balance December 28, 2019 |
(
|
||||
| Actuarial gain (loss) |
(
|
||||
| Prior service costs - GMP equalization |
(
|
||||
| Currency translation gain (loss) |
(
|
||||
| Balance December 26, 2020 | $ |
(
|
|||
| Percentages | 2020 | 2019 | |||||||||
|
Discount rate
|
|
% |
|
% | |||||||
|
Salary increase
|
N/A | N/A | |||||||||
|
CPI inflation
|
|
% |
|
% | |||||||
|
RPI inflation
|
|
% |
|
% | |||||||
| 2020 | 2019 | |||||||||||||
|
Net Periodic Benefit Cost:
|
||||||||||||||
|
Interest cost
|
$ |
|
$ |
|
||||||||||
|
Expected return on plan assets
|
(
|
(
|
||||||||||||
|
Amortization of prior service cost
|
|
|
||||||||||||
|
Amortization of actuarial loss
|
|
|
||||||||||||
|
Net periodic benefit expense (benefit)
|
$ |
(
|
$ |
(
|
||||||||||
| Percentages | 2020 | 2019 | ||||||||||||
|
Discount rate
|
|
% |
|
% | ||||||||||
|
Expected return on plan assets
|
|
% |
|
% | ||||||||||
|
CPI Inflation
|
|
% |
|
% | ||||||||||
|
RPI Inflation
|
|
% |
|
% | ||||||||||
| 2021 | $ |
|
||||||
| 2022 |
|
|||||||
| 2023 |
|
|||||||
| 2024 |
|
|||||||
| 2025 |
|
|||||||
| Years 2026 - 2030 |
|
|||||||
| December 31, 2020 |
Quoted Prices in
Active Markets for Identical Inputs (Level 1) |
Significant Other
Observable Inputs (Level 2) |
Significant
Unobservable Inputs (Level 3) |
Total | ||||||||||||||||||||||
| Plan assets at fair value: | ||||||||||||||||||||||||||
| Temporary cash investments | $ |
|
$ | — | $ | — | $ |
|
||||||||||||||||||
| Corporate stock |
|
— | — |
|
||||||||||||||||||||||
| Total plan net assets at fair value | $ |
|
$ | — | $ | — | $ |
|
||||||||||||||||||
| Plan assets at NAV: | ||||||||||||||||||||||||||
| Leveraged inflation-linked gilt funds |
|
|||||||||||||||||||||||||
| Corporate bonds |
|
|||||||||||||||||||||||||
| Corporate stock |
|
|||||||||||||||||||||||||
| Secured income asset funds |
|
|||||||||||||||||||||||||
| Total plan assets at NAV |
|
|||||||||||||||||||||||||
| Total plan assets | $ |
|
||||||||||||||||||||||||
| December 31, 2019 |
Quoted Prices in
Active Markets for Identical Inputs (Level 1) |
Significant Other
Observable Inputs (Level 2) |
Significant
Unobservable Inputs (Level 3) |
Total | ||||||||||||||||||||||
| Plan assets at fair value: | ||||||||||||||||||||||||||
| Temporary cash investments | $ |
|
$ | — | $ | — | $ |
|
||||||||||||||||||
| Corporate stock |
|
— | — |
|
||||||||||||||||||||||
| Total plan net assets at fair value | $ |
|
$ | — | $ | — | $ |
|
||||||||||||||||||
| Plan assets at NAV: | ||||||||||||||||||||||||||
| Leveraged inflation-linked gilt funds |
|
|||||||||||||||||||||||||
| Corporate bonds |
|
|||||||||||||||||||||||||
| Corporate stock |
|
|||||||||||||||||||||||||
| Secured income asset funds |
|
|||||||||||||||||||||||||
| Total plan assets at NAV |
|
|||||||||||||||||||||||||
| Total plan assets | $ |
|
||||||||||||||||||||||||
| Fifty-Two weeks ended December 26, 2020 | Fifty-Two weeks ended December 28, 2019 | ||||||||||
| Operating lease cost | $ |
|
$ |
|
|||||||
| Operating cash outflows from operating leases | $ |
|
$ |
|
|||||||
| ROU assets obtained in exchange for lease obligations | $ |
|
$ |
|
|||||||
| Weighted average remaining lease term |
|
|
|||||||||
| Weighted average discount rate |
|
% |
|
% | |||||||
| Classification | December 26, 2020 | December 28, 2019 | |||||||||
| Operating lease assets | $ |
|
$ |
|
|||||||
| Operating lease short-term liabilities |
|
|
|||||||||
| Operating lease long-term liabilities |
|
|
|||||||||
| Total lease liabilities | $ |
|
$ |
|
|||||||
|
Fiscal year ending:
|
|||||
| 2021 | $ |
|
|||
| 2022 |
|
||||
| 2023 |
|
||||
| 2024 |
|
||||
| 2025 |
|
||||
|
Subsequent
|
|
||||
|
Total minimum lease payments
|
$ |
|
|||
|
Less: Interest
|
$ |
|
|||
|
Present value of minimum lease payments
|
$ |
|
|||
| 2020 | 2019 | 2018 | |||||||||||||||
|
SALES:
|
|||||||||||||||||
|
Engineered Support Structures segment:
|
|||||||||||||||||
|
Lighting, Traffic, and Highway Safety Products
|
$ |
|
$ |
|
$ |
|
|||||||||||
|
Communication Products
|
|
|
|
||||||||||||||
|
Access Systems
|
|
|
|
||||||||||||||
|
Engineered Support Structures segment
|
|
|
|
||||||||||||||
|
Utility Support Structures segment:
|
|||||||||||||||||
|
Steel
|
|
|
|
||||||||||||||
|
Concrete
|
|
|
|
||||||||||||||
|
Engineered Solar Tracker Solutions
|
|
|
|
||||||||||||||
|
Offshore and Other Complex Steel Structures
|
|
|
|
||||||||||||||
|
Utility Support Structures segment
|
|
|
|
||||||||||||||
|
Coatings segment
|
|
|
|
||||||||||||||
|
Irrigation segment:
|
|||||||||||||||||
|
North America
|
|
|
|
||||||||||||||
|
International
|
|
|
|
||||||||||||||
|
Irrigation segment
|
|
|
|
||||||||||||||
|
Other
|
|
|
|
||||||||||||||
|
Total
|
|
|
|
||||||||||||||
|
INTERSEGMENT SALES:
|
|||||||||||||||||
|
Engineered Support Structures
|
|
|
|
||||||||||||||
|
Utility Support Structures
|
|
|
|
||||||||||||||
|
Coatings
|
|
|
|
||||||||||||||
|
Irrigation
|
|
|
|
||||||||||||||
|
Total
|
|
|
|
||||||||||||||
|
NET SALES:
|
|||||||||||||||||
|
Engineered Support Structures segment
|
|
|
|
||||||||||||||
|
Utility Support Structures segment
|
|
|
|
||||||||||||||
|
Coatings segment
|
|
|
|
||||||||||||||
|
Irrigation segment
|
|
|
|
||||||||||||||
|
Other
|
|
|
|
||||||||||||||
|
Total
|
$ |
|
$ |
|
$ |
|
|||||||||||
| 2020 | 2019 | 2018 | |||||||||||||||
|
OPERATING INCOME (LOSS):
|
|||||||||||||||||
|
Engineered Support Structures
|
$ |
|
$ |
|
$ |
|
|||||||||||
|
Utility Support Structures
|
|
|
|
||||||||||||||
|
Coatings
|
|
|
|
||||||||||||||
|
Irrigation
|
|
|
|
||||||||||||||
|
Other
|
|
|
(
|
||||||||||||||
|
Corporate
|
(
|
(
|
(
|
||||||||||||||
|
Total
|
|
|
|
||||||||||||||
|
Interest expense, net
|
(
|
(
|
(
|
||||||||||||||
| Costs associated with refinancing of debt |
|
|
(
|
||||||||||||||
|
Loss from divestiture of grinding media business
|
|
|
(
|
||||||||||||||
|
Other
|
|
|
|
||||||||||||||
|
Earnings before income taxes and equity in earnings of nonconsolidated subsidiaries
|
$ |
|
$ |
|
$ |
|
|||||||||||
|
TOTAL ASSETS:
|
|||||||||||||||||
|
Engineered Support Structures
|
$ |
|
$ |
|
$ |
|
|||||||||||
|
Utility Support Structures
|
|
|
|
||||||||||||||
|
Coatings
|
|
|
|
||||||||||||||
|
Irrigation
|
|
|
|
||||||||||||||
|
Corporate
|
|
|
|
||||||||||||||
|
Total
|
$ |
|
$ |
|
$ |
|
|||||||||||
|
CAPITAL EXPENDITURES:
|
|||||||||||||||||
|
Engineered Support Structures
|
$ |
|
$ |
|
$ |
|
|||||||||||
|
Utility Support Structures
|
|
|
|
||||||||||||||
|
Coatings
|
|
|
|
||||||||||||||
|
Irrigation
|
|
|
|
||||||||||||||
|
Other
|
|
|
|
||||||||||||||
|
Corporate
|
|
|
|
||||||||||||||
|
Total
|
$ |
|
$ |
|
$ |
|
|||||||||||
| 2020 | 2019 | 2018 | |||||||||||||||
|
DEPRECIATION AND AMORTIZATION:
|
|||||||||||||||||
|
Engineered Support Structures
|
$ |
|
$ |
|
$ |
|
|||||||||||
|
Utility Support Structures
|
|
|
|
||||||||||||||
|
Coatings
|
|
|
|
||||||||||||||
|
Irrigation
|
|
|
|
||||||||||||||
|
Other
|
|
|
|
||||||||||||||
|
Corporate
|
|
|
|
||||||||||||||
|
Total
|
$ |
|
$ |
|
$ |
|
|||||||||||
| 2020 | 2019 | 2018 | |||||||||||||||
|
NET SALES:
|
|||||||||||||||||
|
United States
|
$ |
|
$ |
|
$ |
|
|||||||||||
|
Australia
|
|
|
|
||||||||||||||
|
Denmark
|
|
|
|
||||||||||||||
|
Other
|
|
|
|
||||||||||||||
|
Total
|
$ |
|
$ |
|
$ |
|
|||||||||||
|
LONG-LIVED ASSETS:
|
|||||||||||||||||
|
United States
|
$ |
|
$ |
|
$ |
|
|||||||||||
|
Australia
|
|
|
|
||||||||||||||
|
Denmark
|
|
|
|
||||||||||||||
|
Other
|
|
|
|
||||||||||||||
|
Total
|
$ |
|
$ |
|
$ |
|
|||||||||||
| Net Earnings | |||||||||||||||||||||||||||||||||||||||||||||||
| Gross | Per Share | Stock Price | Dividends | ||||||||||||||||||||||||||||||||||||||||||||
| Net Sales | Profit | Amount | Basic | Diluted | High | Low | Declared | ||||||||||||||||||||||||||||||||||||||||
| 2020 | |||||||||||||||||||||||||||||||||||||||||||||||
|
First
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||||||||||||||||
| Second (1) |
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||
| Third (2) |
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||
| Fourth (3) |
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||
|
Year
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||||||||||||||||
| 2019 | |||||||||||||||||||||||||||||||||||||||||||||||
|
First
|
$ |
|
$ |
|
$ |
|
$ |
|
1 | $ |
|
$ |
|
$ |
|
$ |
|
||||||||||||||||||||||||||||||
|
Second
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||
| Third |
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||
| Fourth |
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||
|
Year
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||||||||||||||||
|
Consolidated Financial Statements
|
|||||
|
Report of Independent Registered Public Accounting Firm
|
|||||
|
Consolidated Statements of Earnings—Three-Year Period Ended December
26, 2020
|
|||||
|
Consolidated Statements of Comprehensive Income—Three-Year Period Ended December
26, 2020
|
|||||
| Consolidated Balance Sheets—December 26, 2020 and December 28, 2019 | |||||
|
Consolidated Statements of Cash Flows—Three-Year Period Ended December
26, 2020
|
|||||
|
Consolidated Statements of Shareholders’ Equity—Three-Year Period Ended December
26, 2020
|
|||||
|
Notes to Consolidated Financial Statements—Three-Year Period Ended December
26, 2020
|
|||||
| The following financial statement schedule of the Company is included herein: | |||||
|
SCHEDULE II—Valuation and Qualifying Accounts
|
|||||
|
Balance at
beginning of period |
Charged to
profit and loss |
Currency Translation Adjustment |
Deductions
from reserves* |
Balance at
close of period |
|||||||||||||||||||||||||
| Fifty-two weeks ended December 26, 2020 | |||||||||||||||||||||||||||||
|
Reserve deducted in balance sheet from the asset to which it applies—
|
|||||||||||||||||||||||||||||
|
Allowance for doubtful receivables
|
$ |
|
|
|
(
|
$ |
|
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Allowance for deferred income tax asset valuation
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(
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Fifty-two weeks ended December 28, 2019
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Reserve deducted in balance sheet from the asset to which it applies—
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Allowance for doubtful receivables
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$ |
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(
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(
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$ |
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Allowance for deferred income tax asset valuation
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(
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(
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||||||||||||||||||||||||
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Fifty-two weeks ended December 29, 2018
|
|||||||||||||||||||||||||||||
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Reserve deducted in balance sheet from the asset to which it applies—
|
|||||||||||||||||||||||||||||
|
Allowance for doubtful receivables
|
$ |
|
|
(
|
(
|
$ |
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|
Allowance for deferred income tax asset valuation
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(
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(
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| — | The Company’s Restated Certificate of Incorporation, as amended. This document was filed as Exhibit 3.1 to the Company’s Quarterly Report on Form 10-Q (Commission file number 001-31429) for the quarter ended March 28, 2009 and is incorporated herein by this reference. | |||||||
| — | The Company's By-Laws, as amended. This document was filed as Exhibit 3.1 to the Company's Quarterly Report on Form 10-Q for the quarter ended March 29, 2014 and is incorporated herein (Commission file number 001-31429) by reference. | |||||||
| — |
First Amended and Restated Credit Agreement, dated as of October 18, 2017, among the Company, Valmont Industries Holland B.V. and Valmont Group Pty. Ltd., as Borrowers, JPMorgan Chase Bank, N.A., as Administrative Agent, and the other lenders party thereto. This document was filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K (Commission file number 001-31429) dated October 18, 2017 and is incorporated herein by reference.
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| — | Indenture relating to senior debt, dated as of April 12, 2010, among Valmont Industries, Inc., the Subsidiary Guarantors party thereto and Wells Fargo Bank, National Association., as Trustee. This document was filed as Exhibit 4.1 to the Company’s Current Report on Form 8-K (Commission file number 001-31429) dated April 12, 2010 and is incorporated herein by this reference. | |||||||
| — | First Supplemental Indenture, dated as of April 12, 2010, to indenture relating to senior debt, dated as of April 12, 2010, among Valmont Industries, Inc., the Subsidiary Guarantors party thereto and Wells Fargo Bank, National Association, as Trustee. This document was filed as Exhibit 4.2 to the Company’s Current Report on Form 8-K (Commission file number 001-31429) dated April 12, 2010 and is incorporated herein by this reference. | |||||||
| — | Second Supplemental Indenture, dated as of September 22, 2014, to Indenture relating to senior debt, dated as of April 12, 2010, among Valmont Industries, Inc., the Subsidiary Guarantors party thereto and Wells Fargo Bank, National Association, as Trustee. This document was filed as Exhibit 4.2 to the Company's Current Report on Form 8-K (Commission file number 001-31429) dated September 22, 2014 and is incorporated herein by this reference. | |||||||
| — | Third Supplemental Indenture, dated as of September 22, 2014, to Indenture relating to senior debt, dated as of April 12, 2010, among Valmont Industries, Inc., the Subsidiary Guarantors party thereto and Wells Fargo Bank, National Association, as Trustee. This document was filed as Exhibit 4.3 to the Company's Current Report on Form 8-K (Commission file number 001-31429) dated September 22, 2014 and is incorporated herein by this reference. | |||||||
| — |
Description of Registrant's Securities Registered Pursuant to Section 12 of the Securities Exchange Act of 1934.
This document was filed as Exhibit 4.9 to the Company’s Annual Report on Form 10-K (Commission file number 001-31429) for the year ended December 28, 2019 and is incorporated herein by this reference.
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| — | The Company’s 2008 Stock Plan. This document was filed as Exhibit 10.5 to the Company's Annual Report on Form 10-K (Commission file number 001-31429) for the fiscal year ended December 28, 2013 and is incorporated herein by this reference. | |||||||
| — | The Company's 2013 Stock Plan. This document was filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K (Commission file number 001-31429) dated April 30, 2013 and is incorporated herein by reference. | |||||||
| 2013 Stock Plan Amendment, dated December 17, 2015. This document was filed as Exhibit 10.7 to the Company’s Annual Report on Form 10-K (Commission file number 001-31429) for the year ended December 26, 2015 and is incorporated herein by this reference. | ||||||||
| — | The Company's 2018 Stock Plan. This document was filed as Exhibit 10.1 to the Company's Current Report on Form 8-K (Commission file number 001-31429) dated March 12, 2018 and is incorporated herein by reference. | |||||||
| — | Form of Stock Option Agreement. This document was filed as Exhibit 10.2 to the Company’s Quarterly Report on Form 10-Q (Commission file number 001-31429) for the quarter ended March 31, 2018 and is incorporated herein by this reference. | |||||||
| — | Form of Restricted Stock Unit Agreement (Domestic). This document was filed as Exhibit 10.3 to the Company’s Quarterly Report on Form 10-Q (Commission file number 001-31429) for the quarter ended March 31, 2018 and is incorporated herein by reference. | |||||||
| — | Form of Restricted Stock Unit Agreement (Director). This document was filed as Exhibit 10.4 to the Company’s Quarterly Report on Form 10-Q (Commission file number 001-31429) for the quarter ended March 31, 2018 and is incorporated herein by reference. | |||||||
| — | Form of Restricted Stock Unit Agreement (International). This document was filed as Exhibit 10.12 to the Company’s Annual Report on Form 10-K (Commission file number 001-31429) for the year ended December 26, 2015 and is incorporated herein by this reference. | |||||||
| — | Form of Restricted Stock Agreement. This document was filed as Exhibit 10.4 to the Company’s Current Report on Form 8-K (Commission file number 001-31429) dated April 30, 2013 and is incorporated herein by this reference. | |||||||
| — | The 2013 Valmont Executive Incentive Plan. This document was filed as Exhibit 10.2 to the Company’s Current Report on Form 8-K (Commission file number 001-31429) dated April 30, 2013 and is incorporated herein by reference. | |||||||
| — | The Amended Unfunded Deferred Compensation Plan for Nonemployee Directors. This document was filed as Exhibit 10.15 to the Company's Annual Report on Form 10-K (Commission file number 001-31429) for the fiscal year ended December 28, 2013 and is incorporated herein by this reference. | |||||||
| — | VERSP Deferred Compensation Plan. This document was filed as Exhibit 10.16 to the Company's Annual Report on Form 10-K (Commission file number 001-31429) for the fiscal year ended December 28, 2013 and is incorporated herein by this reference. | |||||||
| — | Subsidiaries of the Company. | |||||||
|
List of Issuer and Guarantor Subsidiaries. This document was filed as Exhibit 22.1 to the Company’s Quarterly Report on Form 10-Q (Commission file number 001-31429) for the quarter ended March 28, 2020 and is incorporated herein by reference.
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| — | Consent of Deloitte & Touche LLP. | |||||||
| — | Power of Attorney. | |||||||
| — | Section 302 Certification of Chief Executive Officer. | |||||||
| — | Section 302 Certification of Chief Financial Officer. | |||||||
| — | Section 906 Certifications. | |||||||
| Exhibit 101 | — | The following financial information from the Company’s Annual Report on Form 10-K for the year ended December 26, 2020, formatted in XBRL (eXtensible Business Reporting Language): (i) the Consolidated Statements of Earnings, (ii) the Consolidated Statements of Comprehensive Income,(iii) the Consolidated Balance Sheets, (iv) the Consolidated Statements of Cash Flows, (v) the Consolidated Statements of Shareholders’ Equity, (vi) Notes to Consolidated Financial Statements, and (vii) document and entity information. | ||||||
| Exhibit 104 | — | Cover Page Interactive File (formatted as Inline XBRL and contained in Exhibit 101) | ||||||
| Valmont Industries, Inc. | ||||||||
| By: |
/s/ STEPHEN G. KANIEWSKI
|
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|
Stephen G. Kaniewski
President and Chief Executive Officer
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| Signature | Title | Date | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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/s/ STEPHEN G. KANIEWSKI
|
Director, President and Chief Executive Officer (Principal Executive Officer) | 2/24/2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Stephen G. Kaniewski
|
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/s/ AVNER M. APPLBAUM
|
Executive Vice President and Chief Financial Officer (Principal Financial Officer) | 2/24/2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Avner M. Applbaum | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| /s/ TIMOTHY P. FRANCIS | Senior Vice President and Controller (Principal Accounting Officer) | 2/24/2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Timothy P. Francis
|
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Mogens C. Bay*
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Daniel P. Neary* | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| K.R. den Daas* | Catherine J. Paglia* | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Ritu C. Favre* | Clark T. Randt, Jr.* | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Theo W. Freye* | Joan Robinson-Berry* | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Richard A. Lanoha* | Walter Scott, Jr.* | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| James B. Milliken* | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| By: |
/s/ STEPHEN G. KANIEWSKI
|
|||||||
|
Stephen G. Kaniewski
Attorney-in-Fact
|
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